A Summary Of Andrew Carnegie And J. P. Morgan

Horizontal integration- after destroying competitors and when they’re about to go out of business he invites them to join together and be one company

1. During Carnegie’s experience as an “apprentice manager” at the Pennsylvania Railroad, he gained many skills while being a manager. He learned about the economic principles as he got familiar with the finances and accounting, and paved strong personal relationships, such as Thomas A. Scott, that taught him how to become a successful manager, capitalist, and entrepreneur. Through learning about accounting, Carnegie was able to pinpoint how to make decisions such as increasing or decreasing rates and making or postponing repairs. There was also another important concept he learned, the formula for profitable operation of a capital intensive business. The formula was to learn the costs of what is being made and reduce it as much as possible, then once that price is figured out you lower prices to attract a larger volume of commerce. All these lessons lead him to finding ways at saving the

- Carnegie decided to retire & devoted to philanthropy & sold his company in 1900 for over $400million to new steel combination headed by J. P. Morgan.

Horizontal integration involves buying out other companies and taking over one single step of an industrial process. It establishes a monopoly because, with horizontal integration, everyone must go the company that has monopolized that step.

Andrew Carnegie Essay Andrew Carnegie was a ruthless millionaire because of him having a under average wage to so many people that for example led to Homestead Strike (www.history.com, Doc H, Doc I, Doc O). Andrew Carnegie believed in social darwinism that was a way of thinking that the strongest and the ones giving the most effort climes the social ladder the most and his competitor in that area was the great danish person named Jacob Riis who wrote the book called how the other half lives showing the horrible living conditions of how the poor half of the country lived and wrote (notes). Carnegie was also a ruthless millionaire because of the way he gained his monopoly and used it. He made the prices so low for steel that they would go

Andrew Carnegie’s motto was as simple as it could get, “Watch the costs, and the profits will take care of themselves” (Boyer 18-1d). I consider Carnegie as someone who is not afraid to play dirty; he is a master at running his competitors out of business. “Using rigorous cost accounting and limiting wage increases to his workers, he lowered his production costs and prices below those of his competitors” (Boyer 18-1d). Carnegie would stop at nothing until he got what he wanted. “When these tactics did not drive them out of business, he asked for favors from his railroad-president friends and gave “commissions” to railroad purchasing agents to win business” (Boyer 18-1d). Carnegie was way ahead of his competition in the steel company business. Andrew Carnegie had all his competitors scared to death that he would take over the industry, so they decided they would buy him out. “In 1901, J. Pierpont Morgan purchased Carnegie’s companies and set up the United States Steel Corporation” (Boyer 18-1d). Carnegie did not just let the pieces fall into place, he took charge and knew what was going to happen. That is why I think Carnegie is a much better

Carnegie also traveled to Europe multiple times to sell railroad securities. While in Europe, he met many steelmakers which inspired him to look into the steel making business. He then became the manager of the Keystone Bridge Company which he had previously invested in so that he could work on producing more iron and steel. He then founded J. Edgar Thompson Steel Works which would later become the Carnegie Steel Company. He used the Bessemer production method from Britain to make steel and iron.

then realized the demand for steel was very high and he started his own steel company. Carnegie

Other management tactics included vertical integration, as often used by Andrew Carnegie. His business strategy eliminated the middleman by controlling his steel company from a singular office. Carnegie also benefited America through his philanthropic works. As said in his book Gospel of Wealth, “the man of wealth thus becoming the mere agent and trustee for his poorer brethren…” . This means that a wealthy man should give his money back to the community for the good of society (Document C).

I believe that Carnegie’s views are certainly ethical and that the wealthy must assist the poor if not tons of people can die like the many miners who lived tedious low-level existing lives. The miners had a very poor and unhealthy lifestyle they were covered in ash and dust all the time. The dangers of working in the mines were plenty they may be crushed to death at any giving time by the roof burned by exploding gas or simply blown to pieces by the premature blast. There were so many men and boys that ended up being crippled or dead.

Andrew Carnegie is known for being a Captain of Industry who served their country greatly. Carnegie got this title since he ended up one of the richest men on the planet. One motivation behind why Carnegie is viewed as a Captain of Industry is on the grounds that he helped deliver steel in a more proficient manner. Another motivation behind why Carnegie is a Captain of Industry is on account of without him we would not have libraries that are interested in each race, culture, and religion. Carnegie is likewise viewed as a Captain of Industry in light of the fact that despite the fact that he gave all his cash away at last, Carnegie was considered as one of the most powerful person in the United States. Despite the fact that Carnegie is known for being a Captain of Industry, he is also known for being a Robber Baron. Carnegie is a viewed as a Robber Baron since he had his specialists work in his factories which have poor and dangerous working conditions. Carnegie is additionally a Robber Baron in the fact that as he succeeded and moved toward becoming the most richest men in the world. The last thing behind why Carnegie is a Robber Baron is because of when his specialists got up from working for essentially no compensation and went on strike which he chose to have one of his head representatives stop the strike to get Carnegie laborers to work for him once more. To finish up Carnegie changed the world with his innovation of steel and he changed history due to his great innovations and

Vertical integration is when one firm joins with another at a different stage of the same production process. Forward Vertical is when the other firm is at a later stage and Backward Vertical is when the other firm is at an earlier stage. Vertical integration as a whole allows for a firm to control key stages of the production process; guarantees access to a market; and gains control of supplies. Companies such as Zara and American Apparel are vertically integrated, especially at key stages of

As young as 33, Carnegie was pulling in an annual income of $50,000 a year, a huge amount at that time, and this was enough for him. Carnegie was a firm believer that anyone could make it to the top, and that it was the wealthys’ duty to help the poor work towards a more comfortable life. Carnegie said that “the man who dies rich, dies disgraced.” This is a greedy, unselfish philosophy that a robber baron could not conceive.

In the nineteenth century two of the greatest entrepreneurs were born. These two men, Andrew Carnegie and John D. Rockefeller epitomized the word monopoly, by becoming the biggest industry giants of their time. Carnegie was the leader of the steel industry, while Rockefeller controlled oil. Both of these men were similar; they came from humble beginnings and showed interest in their careers at a young age.

Vertical integration is a business growth strategy for economics of scale. It is typified by one firm engaged in different parts of production example; growing raw materials, manufacturing, transporting, marketing, and/or retailing to expand business in existing market for the firm. It can function in two directions both forward integration and backward integration.